ECLAC: The private sector is called to be an agent of change for the productive transformation of the economy of Latin America and the Caribbean

The private sector is called to be an agent of change for the transformation of the economy of Latin America and the Caribbean, in the search for a more productive, inclusive and sustainable development for the region, playing an even more leading role within the framework of productive development policies, stated this Friday, June 28, the Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), José Manuel Salazar-Xirinachs, at the inauguration of the regional Dialogue: “The role of the private sector in the framework of a new vision of productive development policies (PDP) for Latin America and the Caribbean”.

“To get out of the low-growth trap in Latin America and the Caribbean, it is essential that countries scale up and improve their productive development policies. There is a whole new paradigm about what these policies are and how to implement them, and that is what we are promoting at ECLAC,” explained José Manuel Salazar-Xirinachs at the meeting organized by ECLAC, the International Organization of Employers (IOE) and the International Labor Organization (ILO).

The highest representative of ECLAC clarified that “we are talking about productive development policies that put forward appropriate governance and collaboration processes between key actors. That is, PDP understood, mainly, as collaborative efforts between the public sector, the private sector, academia and civil society, in order to identify and address bottlenecks that are limiting productive transformation, as well as initiatives that enhance growth. , productivity and competitiveness”.

“The private sector has already been participating in productive development policies in many of our countries and their territories, and we have many success stories. However, we are convinced that businessmen and their representatives could play an even more leading role in these policies,” stressed José Manuel Salazar-Xirinachs at the opening of the event that included the participation of government officials, representatives of business groups from the countries of the region and specialists from international organizations.

In addition to participating in the design of the PDPs to ensure greater relevance of these policies, the private sector should co-lead cluster initiatives; invest more in research and development (R&D), and generate ventures in new activities that diversify economies, indicated the senior official during a presentation titled “Transformation of the development model of Latin America and the Caribbean and the role of the PDPs.” .

Likewise, large firms could serve as “anchor companies” to improve the productivity of their suppliers, as well as support the international insertion of other companies based on their capabilities and distribution channels, he highlighted.

According to José Manuel Salazar-Xirinachs, “you have to make sectoral bets. It is important that countries, as a public policy, work in partnership with the private sector in specific sectors. “ECLAC has identified a portfolio of driving sectors for the great productive transformation in Latin America and the Caribbean.”

The opening session also featured words from Roberto Suárez Santos, Secretary General of the OIE, and Ana Moreira, Regional Director of the ILO for Latin America and the Caribbean, followed by a presentation by the Director of Public Policies of the Confederation of Production and Trade (CPC) of Chile, Javier Irarrázaval, on the main results of the ILO 2023 report Boosting Productivity in Latin America.

Roberto Suárez Santos of the OIE said that “effective collaboration by the private sector, which can have an impact, is linked to changes in national and global policies. It is of no use for large multinationals to commit to allocating resources, for example, to training young people or strengthening the integration of artificial intelligence, if there are no policies, regulations or institutions that support and integrate it,” and added that “we believe that it is important for the private sector to have leadership. We cannot allow ourselves to be carried away by an absolutely negative approach. We have to navigate these complex waters with a depoliticized approach.”

Meanwhile, Ana Moreira, ILO Regional Director for Latin America and the Caribbean, stressed that the current context of low growth and stagnant productivity requires “the region to seek options to improve and scale up productive development policies in a collaborative manner with the public and private sectors, workers, academia and civil society. Business organizations are essential and can actively contribute to the design, implementation and management of the new and necessary productive development policies.”

During his presentation, José Manuel Salazar-Xirinachs also maintained that social dialogue is a key instrument to manage and guide the transformations that the region requires. “Not only is dialogue on labor matters important, but also that related to macroeconomics, productive development and territorial development,” he said and announced that in September ECLAC will publish a new emblematic report, the Overview of productive development policies in Latin America and the Caribbeanwhich is expected to be disseminated annually.

The event’s five panels presented successful experiences of private sector participation in public-private governance spaces to address strategic issues such as sustainable development, closing human talent gaps, the generation and dissemination of technology and knowledge, and territorial productive development.

Representatives of business consortia, government authorities and specialists from Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Paraguay and Peru are taking part in the meeting.